Vacation Pay Calculator

Our vacation pay calculator helps you determine how much compensation you should receive for your paid time off. This universal tool works for employees in various countries and employment situations.

What is Vacation Pay?

Vacation pay is compensation paid to employees for time off work during vacation periods. It ensures employees can maintain their income while taking necessary rest and recreation time.

Common Types of Vacation Pay:

Percentage of annual salary (typically 4-6%)
Daily rate calculation based on working days
Accrual system based on hours worked

How to Calculate Vacation Pay?

Percentage Method:

Vacation Pay = Annual Salary × (Vacation Pay Percentage ÷ 100)

Example: $50,000 × (4% ÷ 100) = $2,000 vacation pay

Daily Rate Method:

Vacation Pay = (Annual Salary ÷ Working Days) × Vacation Days

Example: ($50,000 ÷ 250 days) × 20 days = $4,000 vacation pay

International Considerations

Vacation pay calculations vary by country and local labor laws. Here are some general guidelines:

North America

In the US and Canada, vacation pay is often calculated as a percentage of gross earnings or based on accrued hours.

Europe

European countries typically have statutory minimum vacation entitlements with specific calculation methods defined by law.

Frequently Asked Questions

How much vacation pay am I entitled to?

Vacation pay entitlement varies by country, employment contract, and local labor laws. Common ranges are 2-6 weeks annually, with 4% of annual salary being a typical calculation method.

When should vacation pay be paid?

Vacation pay timing depends on local regulations and company policy. It may be paid before vacation, during regular payroll, or as a lump sum at year-end.

Is vacation pay taxable?

In most jurisdictions, vacation pay is considered regular income and is subject to the same tax deductions as your normal salary.

What happens to unused vacation pay?

Policies for unused vacation vary by jurisdiction and employer. Some require payout upon termination, while others have 'use it or lose it' policies.